NAMA plans measures to boost the property market
Home » News & Articles » NAMA plans measures to boost the property market
NAMA plans measures to boost the property market
Residential and Commercial finance initiatives aimed at boosting property deals
The National Asset Management Agency plans to provide financing measures for residential and commercial property deals. On Thursday 19th of May 2011, NAMA chairman Frank Daly and chief executive Brendan McDonagh outlined details of the agency’s plans to boost the residential and commercial property markets.
Commercial Property Sector
NAMA has stated that it was looking at ways to provide debt finance in the form of vendor /staple financing, for purchases of commercial property under the control of NAMA debtors or receivers appointed to the agency. The aspects of the above proposal are as follows:
Ø The purchaser will pay 25%-30% of an assets purchase price up front.
Ø After this payment it will enter into a loan agreement with NAMA to repay the outstanding amount over a time period of five to seven years.
The market for such a proposal will be private equity firms, pension funds, sovereign wealth funds and insurance companies. The agency also stated that the “commercial prices have now corrected to where it would have expected them to be had the property bubble not taken place”
Residential Property Sector
In relation to the residential property sector NAMA has stated that it intends to unveil a product in the autumn of 2011 that will “generates sales of property controlled by either NAMA debtors or receivers and provides incentives to purchasers to invest in such property”. NAMAconfirmed that it has had preliminary discussions with Allied Irish Bank and Bank of Ireland about providing financial support and that in expects to have “more detailed engagement in the coming weeks” and that details concerning the above product shall be unveiled in due course.
In relation to the operation of NAMA it has been confirmed the following:
Ø That to date the sale of approximately € 3.3 billion in property assets since March 2010.
Ø The agency has approved almost € 800 million in advances to complete or protect projects. It has € 1.2 billion in cash balances.
On the issue of dealing with debtors it has been confirmed that engagement with the concerned individuals has been “constructive “and that NAMA “will enforce against such debtors that fail to fully engage in the process”.
John McCarrick
John McCarrick and Associates
11 Dunville Avenue, Rathmines
Dublin 6,Ireland
Telephone:01 4960102
Fax: 01 4973717
« Go back to News Headlines
